What is the difference between market value and fair market value?

The difference between market value and fair market value is an important concept when it comes to understanding eminent domain law in California. Market value is the value of a property when it is sold in a free and open market. This means that the value of the property is determined by the seller and buyer, without any government interference. Fair market value, on the other hand, is the amount of money that a buyer would be willing to pay and a seller would be willing to accept for the property under normal market conditions. When it comes to eminent domain in California, fair market value is the amount of money the government will pay a property owner when it takes their property using the power of eminent domain. This is because the government can set the value of the property at a price below what it would be in a private sale. To ensure that the owner of the property is done justice, the government must pay fair market value for the property. This means that the government must pay the amount that a willing seller and buyer would agree to in a typical transaction, which is generally more than the market value of the property. Overall, the difference between market value and fair market value is that market value is the amount of money a property would sell for in a private sale without government interference, while fair market value is the amount of money the government must pay for a property using the power of eminent domain in order to ensure that the owner is treated fairly.

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What is the difference between market value and fair market value?

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